If Price = Marginal Cost at the Output Produced by a Perfectly

question 32

Multiple Choice

If price = marginal cost at the output produced by a perfectly competitive firm and the firm is earning an economic profit, then

• A)marginal revenue is less than price.
• B)average total cost is at a minimum.
• C)total revenue equals total cost.
• D)price exceeds average total cost.

---

Definitions:

Statute of Frauds

A legal concept that requires certain types of contracts to be in writing and signed by all parties involved to be enforceable.

Written Contract

An agreement between two or more parties that is expressed in written form and is intended to be enforceable by law.

Statute of Frauds

The Statute of Frauds is a legal principle requiring certain types of contracts to be in writing and signed to be enforceable.

Partial-Performance Exception

A legal doctrine allowing enforcement of an oral contract, contrary to the Statute of Frauds, based on partial completion of agreed terms.